Scott is conducting oversight of thewhich would force good-credit home buyers to pay more for their mortgages to subsidize loans to higher-risk borrowers. Experts have said under the rule, people with credit scores in the neighborhood of 680 might pay another $40 more per month on a $400,000 loan to subsidize higher-risk mortgages.
Sen. Tim Scott, R-S.C., is challenging the Biden administration's new mortgage rule, expressing concern that it could prevent Americans from owning homes. Thompson and the FHFA have said the new rules are designed to"increase pricing support for purchase borrowers limited by income or by wealth" and comes with"minimal" fee changes, and claimed that the move will"more accurately align pricing with expected financial performance and risks of the underlying loans.
Scott also said that loans to borrowers with minimal down payment"resulted in lower fees, regardless of credit scores.